Understanding Stock Broker

Understanding Stock Broker

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Stock Broker is a person or firm that acts as an intermediary for investors in transacting or buying and selling shares in the capital market. These stockbrokers usually work in a company that carries out business activities of buying and selling shares and working in accordance with stock exchange ethics. And the company that carries out the sale and purchase of shares is called a brokerage company or stockbroker that is a member of the stock exchange.

The shares traded by brokers come from investors of various kinds of business entities, whether companies, CVs, companies, or other business entities that want their shares to be traded. Meanwhile, the investor is the name for the issuing business entity as well as the owner of shares traded on the stock exchange.

Duties of a Broker

The task of a stockbroker is to carry out a stock sale and purchase transaction between a client and a stock buyer. Brokers or stockbrokers do not have the task of buying or selling investors’ shares directly, but only buying and selling shares at the best price.

In addition, the task of a broker or stockbroker is to provide recommendations to investors who are clients to buy or sell shares. These recommendations are based on various kinds of analysis, such as economic analysis, market analysis, market activity, the reputation of shareholder companies, various investment list recommendations, and other important information related to stocks in the market or stock exchange.

How does a Broker or Stock Broker work?

In a securities company that is a place for investors to buy and sell shares, there is a profession called a stockbroker or stockbroker. This broker has the task of helping investors execute buying and selling transactions.

With the development of today’s internet technology, the role of brokers has been replaced by many because they use an online trading system, such as the Indonesian FBS broker. However, the role of stockbrokers or stockbrokers is still needed by investors as consultants. Even to execute stock buying and selling transactions.

Brokerage jobs are commission-based jobs. So that the more frequent transactions, the greater the income that will be obtained by the broker or broker. In addition, not a few brokers who also double as marketing are looking for investors who want to entrust the management of funds or invest and do business on the stock exchange/capital market.

Type of Broker or Stock Broker

In carrying out his profession as an executor of buying and selling shares or securities issued or issued by an investment company as an issuer, stockbrokers or stockbrokers are divided into 3 types, namely:

• Full-Service Broker
Namely stockbrokers or stockbrokers who provide services in the form of advice for investment and the right strategy for investor companies.

• Discount Brokers
Namely stockbrokers or stockbrokers who provide investment strategy and advice services. In addition, it also provides services to determine the decision to buy or sell shares.

• Deep Discount Brokers
Namely stockbrokers or stockbrokers who only provide services for account maintenance and make decisions to sell or buy certain shares.

To become a broker or broker in the stock market is not easy. Because to become a stockbroker or stockbroker, you must pass the WPPE (Securities Broker-Dealer) exam. Even if you want to get a plus, a stockbroker or stockbroker must have a CFA (Chartered Financial Analyst) degree.

Well, that was about the understanding of a broker or stockbroker, its duties, and how it works. Hopefully useful for all of you.

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